The nuts and bolts
Many businesses fail because they have no control of their sales process.
A good sales process:
- Ensures your team is ‘engineered for success’
- This should be present from the moment you employ them to every deal they close
- It’s critical to place the prospect and customer at the centre of the process.
A sales process is the ‘sales way’ of the organisation. Every sales way is unique to the particular company, whether it’s a start-up or a large corporate. The sales process is a blueprint for how the company can best serve its customers, relative to its product or service offering. Ultimately, the key reason for developing a sales process is to ensure you drive maximum revenue.
In my experience many companies, small and large, do not have a well-defined sales process in place. My advice is to begin developing a sales process as a key priority within your company. Keep it simple, do a few things exceptionally well rather than many things in an ordinary way. If executed well, the results will follow far better than you can imagine.
A well thought out sales process enables:
- Improvement in forecasting accuracy
- Repeatability of successes
- Sales managers converting from administrators to effective coaches
- Sales teams shifting from sellers to value creators
- Higher customer satisfaction due to improved professionalism
- More frequent and higher conversion rates
- Every activity of the sales force can be efficiently carried out by new employees
- Management can adapt and improve the way the sales team engages with customers and ensure that the customers are getting the best benefit
- Driving customer satisfaction is the key element on which all improvement is based.
Create a sales process methodology
Always start with the customer. Define all the elements required within your sales organisation relative to a customer’s needs. What customer needs can your company potentially deliver a solution for? Work backwards from that point of departure and you will be able to create all the required sales processes accordingly.
The best way to tackle the creation of a sales process methodology is to define the headings relative to your customers’ needs and then plot them backwards from the very end, such as after sales service and right back to how you recruit a new sales person. There is no blueprint or ‘how to’ template here as each company will (should) have its own customer centric sales way.
Creating a value-driven sales process
There are definitive elements which must always be included in a sales process and the starting point is to ensure your company creates and develops a value-driven, diagnostic-based system for selling.
Your sales engagement process needs to include how you discover, diagnose, design and deliver solutions for your prospects and ultimately customers. Essentially, it’s looking at all the key elements within the sales organisation and then creating a process for them that can be repeated again and again with improvement when necessary. That’s why the sales process methodology you develop remains a living document that must be tweaked and enhanced as required.
Beware of the Internet in your sales process
It’s important to note that the digital revolution has impacted the sales process dramatically. Research from Google and advisory company CEB, titled The Digital Evolution in B2B Marketing, provides new insight into buyer behaviour.
According to the study, customers reported being nearly 60% through the sales process before engaging a sales rep, regardless of price point. Up to 57% of the sales process just disappears. What are buyers doing if they’re not talking to sales?
They’re surfing corporate websites to identify and qualify vendors instead of waiting for the sales team to qualify them. They are using social media to learn more about their needs, potential solutions and providers, and they’re reading, listening to, and watching free digital content that is available to them at the click of a mouse. No longer is the sales force the sole source of information.
It’s becoming increasingly important for sales to transition from being a ‘product pusher’ to an ’insight provider‘ adding value to the buyers’ business.
What does this mean for the sales organisation? No matter whether your sales team numbers one, three or 300, if those people are simply walking, talking product brochures, trying to tell a prospect why your product is better than another, they are going to lose.
Customers, or prospects in this case, know what your product does and what your competitors’ products do, and they may even know that better than the sales person does. So then what is the role of the sales person?
A look at sales metrics
Sales metrics are used to understand the effectiveness of marketing and sales activities and the efficiency of the sales process. They are all the things that a sales organisation needs to do to greatly increase the likelihood of achieving target.
The starting point
- Start with territory alignment, territory management and sales force sizing
- What is the size of your total available market?
- How many people do you need to maximise reach into this market?
- What is the achievable revenue?
- What is the average deal size?
- How many appointments do you need so that you can submit proposals and increase the possibility of closing those deals?
An appointment can be a follow-up to check that what you have sold to someone has been delivered. It could be an appointment that forms part of the way you engage to find a solution and close the deal.
- How many calls do you need to make every week to secure those appointments?
- How many deals do you need to close to achieve target?
- How big should your pipeline of prospects be? This is the number of companies you’re engaging with who may potentially buy your product.
- The sales metrics must be predetermined and inspected and reviewed regularly, daily or at the very least, weekly.
Sales metrics are always related to the target
- If the sales person has a target of R100 000 per month and the average size deal is R20 000, they will have to close five deals a month to achieve target.
- Working backwards from that, and depending on the industry, let’s say 20 appointments per month are required in order to close five deals.
- This means your sales person is closing one out of four. If you prospect and qualify correctly, your team may be able close one out of three. Having the figures to hand can help you shorten the sales cycle and raise performance to deliver a phenomenal increase in revenue.
- Metrics also display how much progress has been made towards the goal of closing the deal.
Developing sales metrics ensures a systematic process you can repeat over time and begin to perfect.
The best way to track metrics is to have a CRM system in place, but the software will mean nothing if you do not have a process in place for how that information is entered into the system.
Diaries need to be populated correctly. If you’re reading this article, take a look at the diaries of your sales force, see how much white space there is, and ask what that sales person is doing during their ‘white space’ time. You will be shocked at the low levels of activity!
Diaries should be colourful and vibrant: Blue for appointments, red for admin, green for follow-ups, whatever colours you choose. And if you see a number of appointments being made for 3.00pm, do your company a favour and give one of those prospects a call to find out how the meeting went. That may well be your second surprise!
Being a trusted advisor; mediocrity to excellence
Develop a culture within your sales organisation by transforming your sales reps from sellers to advisors. By advisor I mean a person who can accompany the prospect through a process of discovery and diagnosis of their needs, talking very little along the way and rather asking intelligent questions to ascertain what that person’s real need is and to expose them to fresh, new ideas — and ultimately to highlight the cost of not changing as well as the real benefits of changing.
It’s not about selling; it’s about ascertaining true need and finding a solution.
This consultative approach to selling starts with the people you employ and the moment they join the organisation. It’s about a culture and that starts with the owner of the business.
How are you as a leader? Is trust fundamental to the way you operate? If you as the leader of a business do not elicit trust-based character traits it’s going to be a barrier to your own selling success and that of your team. That’s because the only differentiator you have in today’s commoditised economy is not your product or your service.
You can differentiate only through adding value to that prospect’s life by being a trusted advisor. Do not sell for yourself; go out there and engage for the betterment of your customer. And it all begins with your sales process.
Developing sales discipline through inspection and metrics
If you do not have a manual with the processes, methodologies and structures in place you are unable to monitor, review and coach your sales team and discipline will be lacking or non-existent. It’s as simple as that.
To quote the late Chet Holmes, ”What you do not inspect, they do not respect.“ If you want your team to respect your policies or processes, make sure they know what you expect, all of this outlined in your process manual. You will be truly amazed at the results that will follow.
Take Your Sales Skills To The Next Level With These 5 Simple Steps
Learn to sell nearly anything.
Entrepreneur Network partner Brian Tracy says one of the most valuable skills a person can have is the ability to sell anything to anyone.
The motivational speaker provides a few tips to help even the most beginner of salesman to improve their skills dramatically:
- Understand the needs of your customers.
- Sell yourself.
- Do research on the client.
- Ask questions and engage in a dialogue with your customers.
Finally, keep in mind that you should not only be selling – but also helping your customers. Selling is part of a relationship and the more established the relationship, the more effective your sales tactics will be.
To hear more about selling from Tracy click on the video below:
This article was originally posted here on Entrepreneur.com.
Boost Your Business With Smart Delivery
Differentiate your business in the one way that customers value the most: deliver the goods on time.
It can be difficult to carve out a competitive advantage in today’s cutthroat business environment. For some companies, investments have been focused on creating digital advantage through measures like apps or fancy websites, or improved processes with clever technology to make things run faster and better. While all those strategies have their place, there could be a far simpler way to put your business ahead of the competition. Deliver the goods, in a very literal sense.
The Internet revolution has made today’s markets very competitive in all sorts of ways. Barriers to entering many markets have tumbled and new competitors are everywhere. Consumers have greater choice than ever and can easily compare prices and service. That is good for consumers, but it makes it hard for companies to attract and retain a loyal following.
By now, it should be no secret that people are willing to pay for convenience. In fact, many of the digital initiatives we see today are succeeding because of the convenience they provide. Take the Uber example: Using technology services, it brings together willing sellers with willing buyers, with the ultimate convenience of being able to see where your Uber is, who the driver is and what car to expect. Even more convenient, your Uber shows up when you need it.
Extend the same concept to physical goods, no matter what they may be and it is not difficult to see how a delivery service can easily put a big smile on your customers’ faces. Whether you are selling horse saddles, operate a bicycle store, run the local grocer, hardware outlet or restaurant: bringing your goods to your customers saves them time, makes it easier to buy and has the added effect of establishing further rapport to build trusted relationships.
According to Forbes, the Internet has habituated today’s shoppers to instant gratification. While physical goods obviously cannot be accessed at a click, there is no doubt that speedy delivery has become a driver of competitive advantage.
Getting a delivery service set up can be easy and low-cost provided your market is fairly local and your product relatively easy to transport. There are a range of options for vehicles, from a versatile bakkie or minivan capable of handling large loads or bigger items, through to a delivery motorbike or scooter. For those providing smaller items, scooters or motorbikes are a great option, as they enable convenience when your customers might most need it: during rush hour. A bike can zip through the traffic, impressing your customer by ensuring that they get what they need, without wasting time stuck in the car due to traffic or lack of parking.
A big question would be whether your deliveries are handled in-house or by a third party. There are pros and cons, but there is an increasing trend for many smaller businesses to make use of specialised logistics/ delivery operations. After all, this means you do not have to make the capital investment in a vehicle or scooter, pay a staff member to do the job and take on the insurance and management issues. Not only are you engaging an expert, you are also doing your bit to support another business.
Third-party delivery partners also work well for deliveries in far-flung areas, or if your product is bulky.
It is a good idea to see what other businesses of your size are doing and who they are using. It is important to choose a delivery partner whose service ethos matches your own.
Whatever option you choose, make sure you understand the risk and have the right kind of business insurance in place. It is also a good idea to have the ability to monitor where your deliveries are in real time. If you have a third-party partner, they should be able to provide this for you.
With most big stores offering delivery services as part of their value proposition, adding this choice to your service offering increasingly makes good business sense. Customers are quite prepared to pay a slight premium to get what they want, right to their front door – and they will keep on coming back for more.
MiWay is an Authorised Financial Services Provider (Licence no: 33970)
5 Reasons Why Your Business Is Losing Customers
Ever think about why people keep buying iPhones, even though they’re so darned pricey?
Like it or not, your business is losing customers. Recent research from McKinsey & Company revealed that only 13 percent of customers surveyed said they were loyal to a single brand. The research found that 87 percent of customers surveyed said they shopped around, and 58 percent had switched to a new brand.
Why do people shop around? What motivates them to abandon the businesses they know and buy products or services from competitors? It’s time that you take a close look at why your business is losing customers – and, what you can do to fix it.
Here are five common reasons why customers leave small businesses … and effective tips you can use to start turning the tide.
1. You’re guilty of poor customer service experience.
Few things can sour a customer experience more quickly than poor customer service. To a customer, your support team is your business. Shauna Geraghty, a clinical psychologist and head of talent at the global customer support innovator TalkDesk revealed on the company’s blog that over 90 percent of customers who are dissatisfied with your customer service experience will — rather than telling you that something is wrong and how you can improve it — just not come back.
So, if you’re not paying attention to your customer-service policies and performance, there’s a good chance that neglect is costing you customers.
This is one reason why some companies, including Comcast, create create support-focused accounts like @comcastcares on Twitter. These accounts are public and are known for helping customers to resolve problems quickly.
What you can do:
Outline thoughtful, positive customer service practices. Start with an internal audit of the policies that govern your team. Conduct interviews with customer-support managers and representatives.
Assess what company policies have led to customer dissatisfaction. What internal issues are preventing your reps from supporting customers quickly and effectively? Use this data to improve your customer service practices.
Then, bear in mind these three golden rules of customer service:
Respond quickly. Acknowledge when a mistake is made and make it right.
Treat the customer with respect and empathy.
Support your customer support team. Give your customer service team the resources they need to provide your customers with awesome service. This includes the technical infrastructure as well as the autonomy to make choices that will benefit your business and support your customers.
2. Your product or service failed to meet expectations
Disappointed customers are likely to share their disappointment with friends on social media. And angry customers will post angry reviews for other prospective customers to see.
What you can do:
Design and build a quality product or service. Don’t think that marketing magic or any amount of other business trickery is going to make up for a poor product or badly executed service. So, work with a talented product designer.
Test. Build with quality materials. Adapt your service based on customer feedback.
Do whatever it takes to create and deliver a service or product that is worth paying for.
3. You didn’t show the value
Price is what a customer pays. Value is what a customer gets. Sales expert and emotional intelligence coach Liz Wendling pointed out on her blog that customers don’t necessarily choose only “the lowest price or the cheapest in town.” Customer preferences, she said, have nothing to do with price and everything to do with the value you are conveying. When your potential customers tell you it is about the money, wrote Wendling, that is actually customer code for “show me the value.”
This is certainly one reason why Apple continues to dominate when it comes to smartphone profits. In Q4, 2017, Apple captured 87 percent of smartphone industry profits but accounted for only 18 percent of total units sold. Customers, clearly, are buying iPhones because they believe that Apple products deliver more value, despite the higher price.
What you can do:
Identify your unique value proposition. What awesome value do you bring to your customers that other businesses don’t? This is your unique value proposition.
Clearly articulate your unique value proposition on all platforms. Publish the benefits of your product or service on your website home page.
Educate your customer support and sales staffers so that they can speak fluently about the value included in your pricing.
Feature your unique value proposition on the landing page for every offer. (Check out https://www.crowdspring.com/blog/landing-page-guide/this article to learn more about creating effective landing pages.)
4. Your business is Inconsistent
In business, and in life, consistency breeds trust. Things that are consistent can be relied upon. And, things that can be relied upon don’t need to be worried about. Inconsistent branding, including using your company’s name or logo differently on your own site and on social networks, plus inconsistent quality or service, all have the potential to drive customers away.
United Airlines learned this lesson the hard way when young women wearing casual wear were not permitted to board a flight unless they changed out of Spandex leggings. Yet any traveler is going to see many, many women at the airport wearing leggings. And there’ was no previous record of United barring others from flying for wearing leggings. That’s why this particular decision created a social media firestorm and lots of confusion.
What you can do:
Deliver an experience customers can rely on. This starts with you and your employees.
Educate all of your employees about what a good customer experience should look like.
Create a branding guide to establish uniform branding guidelines and share it with your team.
Hold your employees accountable for delivering a consistently positive customer experience.
Create strong customer interaction policies. Whatever your policies are, make sure that they will serve your customers well before you implement them. Then stick with them! Be consistent.
5. Your sales tactics are out-of-date.
Aggressive sales techniques are more likely to drive customers away than lead to positive results. Leslie Ye, for HubSpot, wrote that the old sales playbook — dragging prospects through a sales process and strong-arming them into a purchase — worked only because there was no better way for buyers to buy.
If your sales techniques focus on manipulating or coercing a sale, your business is actively chasing customers away.
What you can do:
Employ value-based selling techniques. Take the time to learn what your customer actually needs. Then offer value-based solutions that address those needs. Show how your product benefits the customer and allow them to decide if it’s the right fit for them.
Build relationships with your customers. If you’re trying to sell with every single customer interaction, you’re doing it wrong. Instead, focus on establishing trust with your prospective customers.
Have honest interactions and provide value through useful content and entertaining social media engagement. Then, when a customer needs the product or service you provide, he or she will turn to you, a trusted resource.
The key to growing a business is to maintain the customers you already have while acquiring new ones. So, stop leaking customers. The success of your business depends is at stake.
This article was originally posted here on Entrepreneur.com.
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